Chief Executive Michael Sheehan in a statement said, "The burden of Bally's long-term indebtedness, coupled with the lack of refinancing options in today's constrained credit markets," left no alternative other than a bankruptcy filing, despite "marked improvement" in Bally's operating results.

The company said on Wednesday it has received "strong" interest from prospective purchasers and is in "active and advanced" talks with some lenders on an agreement to buy its assets.

It said if it negotiates such an agreement, lenders would provide it with financing to conduct day-to-day operations.